CAAC is partnering with China Merchants Bank (CMB) to launch a digital yuan payment platform.
China Civil Aviation Administration (CAAC) has officially consent Digital yuan to buy airline tickets. The company issued a notice on July 18, 2023, via a blog post.
Spring Airlines was the first airline to do so Allow payment announced its digital yuan ticket in 2021. The carrier received 560 yuan for a flight ticket from Shanghai to Shenzhen. Xiamen Airlines soon followed suit in November of the same year. Subsequently, Beijing Daxing International Airport and Beijing Capital International Airport also unveiled a digital yuan initiative in 2022. However, widespread use of the asset in the aviation sector did not follow.
Partnership for airline tickets
With the new development, CAAC has partnered with China Merchants Bank (CMB) to launch a digital yuan payment platform. The platform is known as the digital renminbi settlement mode of implementing the government procurement management platform for civil aviation tickets. While both parties have engaged in multiple projects in the past, this new project will allow digital currency to be used to settle commercial airline tickets. Similarly, travelers can also use CBDCs to access new services through the platform.
In addition, the platform provides a new service experience for business travelers and is expected to boost the digital economy. Before the launch, the company indicated that it had completed the functional testing of the airline ticket purchase service system. I also tested the China Merchants Bank’s clearing system.
Digital yuan tests continue across sectors
China has made great progress in developing a central bank digital currency. The People’s Bank of China (PBOC) has been testing the digital renminbi across the country since 2020. The first major deployment of the asset was at the 2022 Winter Olympics in Beijing. Since then, the bank has been conducting beta tests in various cities.
The bank also encouraged the use of the digital yuan in the transportation sector. Railway stations, light rail connections and metro systems have been upgraded across the country to facilitate seamless transactions with the digital yuan. Elsewhere, the bank has partnered with China Telecom and China Unicom to allow offline transactions of digital yuan via SIM cards. The plan will also allow users to pay for goods and services using the digital yuan, even without a bank account or internet connection.
The adoption of the digital yuan by the CAAC is expected to boost development and innovation in the country’s digital economy. It should also increase the competitiveness and influence of China’s aviation sector in the global market.
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An experienced writer with hands-on experience in the financial technology industry. When not writing, he spends his time reading, researching, or teaching.
